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Jairam Ramesh's removal from the Union Ministry of Environment and Forests on July 12 brought jubilation to Industry lobbyists. Let us wait and watch the moves of his successor, Jayanthi  Natarajan.

On 20 September  it was announced that mining in forest areas will be subject to tough conditions like strict adherence to forest rights laws, consent of gram sabhas (village assemblies) and a case-by-case basis approach to proposals.

While a "go/no-go" policy will not be followed, a group of ministers agreed that some forest areas will be considered inviolate where no mining can be permitted. These areas will be considered vulnerable  from the environmental aspect as well as with regard to tribal populations. Although the GoM's decision is yet to be formalized, there was a consensus that the environment and forests ministry will demarcate these inviolate areas.

Jayanthi  Natarajan stood her ground on the right of the gram sabha to reject diversion of traditional forest lands for projects under the Forest Rights Act.

The environment minister opposed any blanket forest clearances to expansion of up to 25% for thermal power projects pointing out that the law required her ministry to clear these projects on a case-to-case basis.

Earlier, Jayanthi  Natarajan had undertaken a review and permitted the parallel processing of environmental and forests clearances, but she had stuck to the Supreme Court-ordered linkage of the two. One cannot be made operational without the other clearance.


The biggest failure of Ramesh regime was that he could not bring systemic changes.

Baba Ramdev and his cohorts are enacting a made-to-order soap-opera for the story-starved TV channels. But how many of the protesters who are chanting slogans against black money understand the hurdles to recover black money?   Do the protesters imagine that they are innocent of the crime themselves?  Each time, you pay a bribe to an official to get your job done, you are the cause of generation of black money, however small.  The same holds true for corporate, in a larger scale.

The Union Finance Minister Pranab Mukherjee  within the last few of May 2011  declared the establishing of a Directorate of Criminal Investigation in the Income Tax Department to handle tax offences associated with unlawful actions and to identify crimes or scammers by searching for the flow of black money prior to, in the course of and after a felony is perpetrated.
In April 2011, the government constituted a multidisciplinary panel, composed of top authorities of various departments, to supervise and synchronize investigations into instances of money laundering and hoarding  of unaccounted wealth in safe countries.

The Impact of black money

A healthy economy expands, to a large extent, on the money that comes to that country's government as tax revenue. The generation and circulation of black money causes great losses to the country's treasurer. The following are some of the other ways in which black money can affect a country's financial and social progress.

Misuse of productive resources

Black money in an economy tends to cripple the free flow of a country's resources in the right direction. It also widens the income gap. Salaried individuals, especially those in the lower rung of the corporate ladder, do not see their incomes rising unlike those in the higher echelons as it can be safely assumed that the latter group has huge sources of unaccounted income, the vindication of which comes from news reports virtually on a daily basis.

An impediment to a country's growth indicators

The presence of unaccounted money acts as a block on the right assessment of a country's progress. The assessment of a country's progress is dependent on the accurate calculation of the savings-to-income ratio and sector-wise composition of national income. The floating of black money would obscure true figures. When black money is parked in so-called safe tax havens overseas, the  country also innocently becomes a  ‘lender’ of capital to more advanced and wealthier nations.

Supports Criminal and Terrorist Groups

Finally, black money needs brute ‘street power’ for its protection and proliferation as well as accounting experts, liaison officers who negotiate between black money operators and political leaders. It corrupts the entire social and political fabric of a country.

Internet advertising still forms a small segment, about 3%, of the total advertising pie in India. The figure is forecasted to grow to 5% by 2012. It faces challenges like slow internet connections and general reluctance of Indian consumers towards online purchases. But with broadband becoming cheaper and 3G coming in, the change could be rapid.

The  Internet  advertising market will grow to Rs 9930 million in the financial year 2010-2011 from Rs 7850 mil in the financial year 2009-2010, according a recent survey conducted by the Internet and Mobile Association of India (IAMAI).